India, Bhutan Boost Energy Ties with Punatsangchhu Hydropower Projects gcdmagazine
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Green Updates 15 Apr 2026

India, Bhutan Strengthen Energy Ties with Focus on Major Hydropower Projects

India and Bhutan have reinforced their long-standing partnership in the energy sector through high-level discussions focused on advancing major hydropower projects.

Union Power Minister Manohar Lal met Bhutan’s King Jigme Khesar Namgyel Wangchuck to explore avenues for strengthening bilateral energy cooperation, which continues to be a cornerstone of relations between the two nations.

A key highlight of the engagement is the progress on the Punatsangchhu hydropower projects. The minister is scheduled to attend the commencement of dam construction works for the 1,200-MW Punatsangchhu-I Hydroelectric Project on April 10, alongside his Bhutanese counterpart, marking a significant step forward in project execution.

In another important development, India and Bhutan recently signed a protocol agreement on the export tariff for the 1,020-MW Punatsangchhu-II project. The project was jointly inaugurated by Prime Minister Narendra Modi and Bhutan’s King in November last year.

Punatsangchhu-II has already begun exporting surplus electricity to India from September 19, 2025, under a mutually agreed tariff framework, further enhancing cross-border energy trade and cooperation.

These developments underscore the growing momentum in India–Bhutan energy collaboration, with hydropower projects serving as a key pillar of the partnership. The initiatives not only strengthen energy security but also promote sustainable development and economic growth in the region.

With continued collaboration and strategic investments, hydropower remains a vital symbol of the mutually beneficial relationship between India and Bhutan.

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